Page 238 - Performance Leadership

Chapter 12 Performance Networks • 227

Within joint-value relationships, transparency consists of a full set of
management information, which is similar to what any company would
require from internal operations. There is also operational information
exchange as well, but too much emphasis would lead to transactional
behaviors. In addition to the management information, transparency
consists of a certain free flow of organizational capacity. Think of an
exchange of capital, contribution of skills and staff, materials, and use
of facilities. These can be formalized within a joint venture, but this is
not necessary. Managing joint-value relationships requires a voluntary
and open exchange. See Table 12.3.
The effects of sharing information are dramatic. Transparency drives
behaviors in a positive direction. Recall the example in Chapter 3 of the
claims department of the insurance company. Hanging a poster with a
few graphs every week at the message board near the coffee machine show-
ing the average processing time of a claim had tremendous impact. I am
not suggesting disclosing the organization’s complete strategy. But a good
strategy is based on the skills, resources, market position, and other unique
characteristics of an enterprise. This is not easily copied by the competi-
tion. And even if it is copied, a copied strategy doesn’t fit the competition

T able 12.3
Information Exchange

Type of Relationship Examples
Transactional • Information on orders, inventory, sales, promotions,
invoices and other transactional topics
Added-value In addition to transactional information:
• Benchmark information for customers or suppliers,
comparing themselves with others
• Management information on cost savings, or generated
opportunities
• Integrated processes and systems for processing and
controlling transactions between the organizations
Joint-value In additional to information and integrated systems and
processes:
• Full set of management information on the joint activity
• Flow of capital between partners
• Allocated staff resources to the joint initiative
• Sharing facilities and materials